Canada's PotashCorp and US Mosaic settle potash tolling dispute

08 December 2011 14:00  [Source: ICIS news]

TORONTO (ICIS)--Potash Corporation of Saskatchewan (PotashCorp) and Mosaic have settled their legal dispute over a tolling arrangement under which Mosaic supplies potash to PotashCorp from a Canadian mine, the fertilizer majors said on Thursday.

PotashCorp said under the settlement Mosaic will deliver the balance of the potash tonnes owed to PotashCorp for the 2011 and 2012 calendar years.

As part of the settlement, Mosaic’s counterclaim for damages arising from PotashCorp’s declaration of force majeure in April 2009 will be dismissed, PotashCorp said.

“This settlement provides PotashCorp and its stakeholders with certainty through 2012 and dovetails with our ongoing potash expansion programme, which will increase operational capability to 17.1m tonnes by 2015,” said PotashCorp CEO Bill Doyle.

In a separate statement, Mosaic said the settlement would “resolve the tolling agreement dispute in its entirety”, cancel a scheduled court trial and dismiss the claim of PotashCorp and the counterclaim of Mosaic.

The parties had been scheduled to begin trial before Saskatchewan’s Queen's Bench Judicial Centre in January 2012.

The dispute was over Mosaic’s obligations to supply potash from its Esterhazy mine in Saskatchewan to PotashCorp under a tolling deal which began in 1978.

PotashCorp had disputed Mosaic's determination as to when Mosaic's obligation to provide potash from the Esterhazy mine to PotashCorp expires, ICIS reported previously. Under the tolling deal, Mosaic has provided about 1m tonnes/year of potash from Esterhazy.

For more on PotashCorp, Mosaic and other producers visit ICIS company intelligence

By: Stefan Baumgarten
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